Michigan Real Estate Market: When will My Home Value Return?

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Michigan Real Estate Market: When will Home Values Return?

Michigan has become the poster child for the effects of the recession, but are things finally starting to pick up in this beleaguered state?

Michigan, along with much of the Great Lakes region, has been nearly devastated by the recession and plummeting housing market. However, just a couple years after the bottom fell out, the numbers in Michigan are starting to recover quite nicely.

As one of the worst impacted markets in the nation, you would think that Michigan would not see the light of day for quite a few years. However, Housing Predictor recently listed Detroit, the epicenter of the crashing economy, as number one on its list of Top Housing Markets for 2010.

Double-Digit Gains in Home Values

Detroit, in fact, is now expected to experience double-digit games when it comes to home values. Detroit home values are expected to increase by 21.5 percent in 2010 alone.

Other nearby housing market that are also expected to see large gains include: Cleveland, OH (values are expected to increase 17.8 percent); Cincinnati, OH (values are expected to increase 12.7 percent); and Columbus, OH (values are expected to increase 10.3 percent).

This is not to say that Michigan still doesn’t have its share of problems when it comes to foreclosures. In fact, according to the Mortgage Banker’s Association National Delinquency Survey, Michigan still ranks as one of the top states. Unemployment in Michigan also still stands at 13.7 percent (followed by California at 12.3 percent and Florida at 11.2 percent).

Auto Industry showing Signs of Improvement

Another factor when talking about Michigan’s economy and housing market is the auto industry, which is finally seeing rising sales after dropping to their lowest levels in 50 years. In addition, three domestic automakers are also expecting their share of the U.S. market to rise this year after many years of falling numbers.

Michigan job losses appear to have calmed down as well, as forecasts have the state gaining more jobs than it loses this year. Economists expect this trend to continue through 2011. Personal income in Michigan is growing at a rate of about two percent, compared to a three-percent drop in 2009.

Where does this leave homeowners? More specifically, when can you expect home values to return in Michigan? Although this state has shown incredible improvement this year alone, there is a long way to go in terms of home values. Most major markets in Michigan can expect to see home values return between 2015 and 2025.